iHeartMedia 2014 Annual Report Download - page 33

31
Consolidated Results of Operations
The comparison of our historical results of operations for the year ended December 31, 2014 to the year ended December 31,
2013 is as follows:
(In thousands)
Years Ended December 31,
%
2014
2013
Change
Revenue
$
6,318,533
$
6,243,044
1%
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)
2,534,365
2,554,087
(1%)
Selling, general and administrative expenses (excludes depreciation and amortization)
1,687,208
1,649,861
2%
Corporate expenses (excludes depreciation and amortization)
320,331
313,514
2%
Depreciation and amortization
710,898
730,828
(3%)
Impairment charges
24,176
16,970
42%
Other operating income, net
40,031
22,998
74%
Operating income
1,081,586
1,000,782
8%
Interest expense
1,741,596
1,649,451
6%
Gain on marketable securities
-
130,879
Equity in loss of nonconsolidated affiliates
(9,416)
(77,696)
Loss on extinguishment of debt
(43,347)
(87,868)
Other income (expense), net
9,104
(21,980)
Loss before income taxes
(703,669)
(705,334)
Income tax benefit (expense)
(58,489)
121,817
Consolidated net loss
(762,158)
(583,517)
Less amount attributable to noncontrolling interest
31,603
23,366
Net loss attributable to the Company
$
(793,761)
$
(606,883)
Consolidated Revenue
Our consolidated revenue during 2014 increased $75.5 million including a decrease of $22.7 million from movements in
foreign exchange compared to 2013. Excluding the impact of foreign exchange movements, consolidated revenue increased $98.2
million. Our iHM revenue increased $29.9 million driven by increased revenues from political advertising, our traffic and weather
business, core national broadcast radio and digital revenues. Americas outdoor revenue decreased $37.3 million compared to 2013,
including negative movements in foreign exchange of $3.4 million. Excluding the impact of foreign exchange movements, Americas
outdoor revenue decreased $33.9 million primarily driven by lower revenues generated by national accounts and the nonrenewal of
certain airport contracts, and lower revenues in our Los Angeles market as a result of the impact of litigation. Our International
outdoor revenue increased $52.3 million compared to 2013, including negative movements in foreign exchange of $19.3 million.
Excluding the impact of foreign exchange movements, International outdoor revenue increased $71.6 million primarily driven by new
contracts and from growth in Europe and emerging markets. Other revenues increased $33.1 million primarily as a result of higher
political revenues and a contract termination fee of $15 million earned by our media representation business.
Consolidated Direct Operating Expenses
Consolidated direct operating expenses during 2014 decreased $19.7 million including a decrease of $11.9 million from
movements in foreign exchange compared to 2013. Excluding the impact of foreign exchange movements, consolidated direct
operating expenses decreased $7.8 million. Our iHM direct operating expenses decreased $21.6 million compared to 2013, primarily
resulting from lower costs in our national syndication business partially offset by higher programming and content costs. Direct
operating expenses in our Americas outdoor segment decreased $11.1 million compared to 2013, including a decrease of $2.5 million
from movements in foreign exchange. Excluding the impact of foreign exchange movements, direct operating expenses in our
Americas outdoor segment decreased $8.6 million, primarily due to lower site lease expenses related to the decrease in revenues and
from the nonrenewal of certain airport contracts. Direct operating expenses in our International outdoor segment increased $13.2
million compared to 2013, including a decrease of $9.4 million from movements in foreign exchange. Excluding the impact of foreign
exchange movements, direct operating expenses in our International outdoor segment increased $22.6 million primarily as a result of
higher variable costs associated with new contracts.